XRP is facing significant overhead resistance as Glassnode data reveals a large cohort of holders, particularly those who bought 6-12 months ago, have an average cost basis around $2.22. This price point is approximately 52% above XRP's current trading level of $1.08, creating substantial 'trapped supply' that could cap any rebound efforts. This on-chain metric highlights the challenge for XRP to sustain gains above $1, as these long-term holders are likely to sell into strength to reduce losses. Watch for XRP's ability to break above $1.20 to signal a potential shift in sentiment, or a retest of $0.90 if selling pressure mounts.
XRP's on-chain data indicates strong overhead resistance from long-term holders with high cost bases. This trapped supply impedes price recovery, suggesting any rallies will likely be met with selling pressure, impacting broader altcoin sentiment.
This story reveals the impact of on-chain holder behavior on price action, particularly how 'trapped supply' creates overhead resistance. It implies that assets with significant underwater cohorts will struggle to achieve sustained upward momentum.
Glassnode reported that XRP holders who bought between 6 and 12 months ago have an average cost basis near $2.22, roughly 52% above the token's price of $1.08 on July 14, and far above the $ 1.09-$1.11 realized price for coins bought in the past month. XRP perpetual funding spanned a 2.6-basis-point